The International Advisory and Monitoring Board (IAMB) of the Development
Fund for Iraq met at the World Bank offices, in Paris, France on June 20-22,
2004 and issued the following statement:

"The IAMB welcomed the Iraqi observers Dr. Mehdi Hafedh, Minister of
Planning and Development Cooperation and Professor Mahdi Hadi Al-Kafaji, and
the US observer Mr. Cameron Leuthy. The IAMB also welcomed representatives
from the Interim Government of Iraq, the Iraq Board of Supreme Audit, the CPA,
and the external auditor KPMG.

"In connection with its work related to UN Security Council resolution
1483 (2003), the IAMB received a comprehensive briefing on the status of the
audit work from KPMG. The audit work is largely complete and KPMG expects to
issue the final audit reports by July 14, 2004. The IAMB will ensure that the
audit reports and its comments thereon will be made public.

"The IAMB welcomed an update by the CPA on the latest DFI activities
and a briefing on the handover process. The IAMB is seeking from the CPA a
designated official to act as a counterpart to the IAMB in connection with
the finalization of the ongoing audits under UNSCR 1483. The IAMB also discussed
its work related to the UN Security Council resolution 1546 (2004).

"The IAMB regrets, despite its repeated requests, the delay in receiving
reports on audits undertaken by various agencies on sole-sourced contracts
funded by the DFI. In the light of these delays the IAMB decided to commission
a special audit to determine the extent of sole-sourced contracts. The IAMB
was also informed by the CPA that contrary to earlier representations the award
of metering contracts have been delayed and continues to urge the expeditious
resolution of this critical issue. Finally, the IAMB noted the delay in completing
the audits on the State Oil Marketing Organization (SOMO) and requested the
CPA to press for prompt finalization of these.

"The next meetings of the IAMB are tentatively scheduled for July 14-15
and September 7-8."